Billabong says it's weeks away from ‘solid financial footing’
28/08/2013
“Financial stability is critical to rebuilding Billabong,” said Dr Ian Pollard. “Liquidity has been secured and we are within weeks of finalising our long term funding arrangements.”
Dr Pollard said despite the significant distraction of managing multiple bid and refinancing proposals a number of major reforms have been completed or are well advanced, including the sale of Canadian retail chain West 49; closing 158 underperforming retail stores and reducing suppliers by 75%.
Business simplification measures have included reducing European headcount by 15%; restructuring the Australasia wholesale operations and moving to a distributor model in sub-scale markets in Asia; and restructuring to a core customer and brand proposition in South Africa and South America.
“We are nearing the end of a long process that has caused distraction, impacted on staff morale and has been very costly,” said Dr Pollard. “The company looks forward to refocusing, reinvigorating its brands and rebuilding the business on a solid, long term financial footing.”
Global sales fell 14% to $1.34 billion for the year ending 30 June 2013, and the company reported a net loss of $859.5 million.
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